Romney Is Right: More Quantitative Easing Won't Help

Courtesy of CNN You never seem to know with Romney - one day he seems to have a sound understanding of the economy and then the next he seems to alter his position to satisfy his base.

Yesterday, he seemed to be getting it (that, or he knows that QE3 could spark an equity market rally which would likely dampen his chances of winning) - via Bloomberg:

"Former Massachusetts Governor Mitt Romney said the Federal Reserve should refrain from a third round of large-scale asset purchases.

Romney, the presumptive Republican nominee for president, said that while the first round of bond buying by the U.S. central bank may have had a positive effect, a new round of quantitative easing will not help the economy.

"I am sure the Fed is watching and will try to encourage the economy," Romney said in an interview broadcast on CNN's "State of the Union" program. "But I don't think a massive new QE3 will help the economy."

Whether he's playing politics or not doesn't really matter though. Romney is right. More QE won't resolve our problems. As I said before QE2 was initiated, this remains a "monetary non-event".